How do I Remove a Partner from my Business?

Many partnerships begin among friends or individuals with similar interests who have a business idea together. However, having a good business idea and being able to cooperate to actually run a successful partnership are two very different things. In many cases, you may realize that your partner is not pulling his or her own weight or is even bringing the business down through his or her actions, or lack thereof. In such situations, you may naturally wonder what you have to do to remove that partner from the partnership and continue running the company without them.


Unfortunately, simply removing a partner and continuing with business as usual is often much harder than it seems. Your options should be closely evaluated depending on your specific circumstances.  Having the assistance from a San Jose partnership attorney will help your business establish a binding partnership agreement that will allow the business to run smoothly and efficiently even if a situation arises between partners.

Do You have a Partnership Agreement?

A partnership agreement is a key document that sets out the terms for operations and ownership of the partnership, including identification of the partners, partner responsibilities, profits and losses, and other rules. In some cases, a partnership agreement will address the subject of partner removal and set out requirements to do so. If it does, you will need to follow these requirements in order to remove the offending partner. If the partner refuses to comply, you may need to petition the court to enforce your partnership agreement.

When You Have no Guidance from an Agreement

Many partnership agreements are silent on the subject of partner removal and many partners fail to sign an agreement at all. Unfortunately, without such guidance, there is little you can do to get rid of a partner. Partners are not employees who can be fired – they are owners of the company and you cannot simply take their ownership interests away from them. In many situations, the best course of action may be trying to resolve any disputes you have with your partner internally or through mediation to see if you can continue to work together.

If you truly no longer want to or can work with your partner, you should consider dissolving the partnership as a whole, or buying out your partner if possible. Sometimes, it may be better to start over with a new venture on your own or with others than try to continue with a bad partner.

Seek the Advice of a San Jose Partnership Attorney Today

Dealing with a troubling partner can affect the business substantially. The experienced partnership lawyers at Structure Law Group, LLP will examine your options and help you resolve your issue with as little disruption to your business and life as possible. Call our San Jose office today at 408-441-7500 for more information or fill out our online contact form.